The Low Temperature Circulating Fluidized Bed process was invented by Peder Stoholm, Danish Fluid Bed Technologies (DFBT), in the late 1990's. The main purpose for the invention was finding a method to co-fire difficult biomass and waste fuels that could not otherwise be utilized for efficient power production. DONG Energy has followed the development and in 2009 DONG Energy acquired DFBT's rights and related knowhow.

The invention of the Low Temperature Circulating Fluidized Bed resulted in the construction of three test plants at the Technical University of Denmark (DTU). These test plants have been and presently still are the backbone of the research and development efforts concerning the Low Temperature Gasifier.